Interactive Brokers vs UBS, Switzerland
Interactive Brokers vs UBS: which is the better broker for Swiss investors?
Same portfolio at both providers: CHF 50,000 to start, CHF 500 a month, 5% a year, held for 30 years. Interactive Brokers costs CHF 614 in total fees. UBS (key4 / securities account) costs CHF 38'000, which is CHF 37'386 more, roughly 62 times as much. To run the numbers on your own portfolio, use the broker fee calculator on etfschweiz.ch.
Referral link: ibkr.com/referral/marco1592. The bonus is paid by Interactive Brokers. Using it costs you nothing extra.
Cost comparison, side by side
| What you pay for | Interactive Brokers | UBS |
|---|---|---|
| Total fees over 30 years | CHF 614 | CHF 38'000 |
| Custody fee | None for normal accounts | 0.25% to 0.4% a year on the whole portfolio, plus VAT |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | Typically CHF 40 to CHF 100 per order on a classic account |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | Retail spread, usually 1% to 1.5% |
| Swiss stamp duty | Not charged: the account sits outside Switzerland | Charged: 0.075% Swiss, 0.15% foreign securities |
Figures are indicative, based on published tariffs and moneyland.ch style comparisons for the portfolio described above. Tariffs change, so check both providers before you decide.
Where UBS is genuinely good
- One relationship for banking, mortgage and investing
- Branches, advisers and a name your parents trust
- Tax statement delivered automatically each spring
Where it costs you
- The yearly custody fee alone can exceed a decade of IBKR costs
- In-house funds are often pushed and carry their own fees
- Order commissions make monthly investing expensive
My take
This is the switch I made myself. Same funds, same market, roughly CHF 900 a year less on a CHF 100,000 portfolio.
Both accounts are legitimate and both are regulated. The question is what you are paying for. If you want a Swiss adviser and a Swiss tax statement handed to you, UBS does that. If you want to keep as much of your return as possible, Interactive Brokers is the cheaper account and the paperwork takes about half an hour a year.